FCA warns companies over preference shares after Aviva outcry

Rew Bailey, chief executive of the Financial Conduct Authority, has told companies to make it clear to investors whether their preference shares can be redeemed for less than the market price. In a letter to chief executives on Thursday, Mr Bailey said: "The FCA wants to ensure investors have access to the information that they require in order to properly assess the risks and rewards attaching to such shares." The letter follows controversy at Aviva, the insurance company, which provoked an outcry last month when it said it was considering cancelling its irredeemable preference shares. The price of the preference shares dropped sharply on the news. Aviva later dropped the idea following protests from institutional and private investors.